A Viewpoint Of Post-keynesian Income Distribution

Post-Keynesian Economics was born after the World Second War, and itsscholars mainly analyze the distribution of national income to figure out a method torealize the long-term economic growth by changing the income distribution structure.They propose a viewpoint which is the opposite of neo-classical synthesis and insistson exploring the economic problems from a non-mainstream perspective. Its researchproduction includes both theoretical analysis and empirical model, which can helppeople have a deeper understand to the diversity and complexity of the economy.However, Post-Keynesian Economics’ income distribution theory has notreceived proper attention. The mainstream neo-classical economic simply regardslabour and capital as technical production factors and considers labour income andcapital income as fair returns obtained from marginal producers; these theories turnincome distribution problems into an appendage of the micro factor price theory.Against this underground, restudying how Post-Keynesian Economics’ incomedistribution theory explains why the laour income share decline phenomenon iswidespread in the world has great value.This essay analyzed the development and spread of the Post-KeynesianEconomics’ income distribution theory, and focused on Post-Keynesian Economics’three generations leaders’ theories of income distribution. The development of thePost-Keynesian Economics experienced three stages, and the Neo Cambridge Schoolis its initiator. Although the Neo Cambridge School’s principle members’ key pointsare not the same, these key points are all embarked from Keynes’ theory of effectivedemand and expanded the short-term analysis into long-term analysis to propose theirown income distribution theory. Kaldor, Robinson and Sraffa’s theories of the incomedistribution are the most representative of these income distribution theories. Based on the Neo Cambridge School’s theory, the second and third generationsPost-Keynesian Economics which are influenced deeply by the Neo CambridgeSchool’s theory continually improved the income distribution theory and made newprogress. Pasinetti who is the leader of the Second generation Post-KeynesianEconomics proposed amendment to Kaldor’s income distribution theory to explorethe class antagonism and income distributive method of the capitalist society, thereare also a lot of other economists such as Winter also continually improve the incomedistribution theory and make it owns general applicability. The third generationscholars pay more attention to the structuring of the economic theory system; theycarried out theoretical discussion around the new economic conditions and enhancedexperimental verification of the income distribution theory. Post-KeynesianEconomics’ income distribution theory has been further improved under the secondand third scholars’ effort and proposed individual income distribution theory, whichconsidered the influence of the class conflict and intensive studied the redistributionof the gross pay between workers and managers. These developments of thePost-Keynesian Economics have profound theoretical and practical significance.This essay also carried out the comparative research of classical economics,neoclassical economics, and Post-Keynesian Economics’ theory of incomedistribution, Post-Keynesian Economics economists strive to revive the classicaldistribution theory and its theory is continually improved through the process ofcriticizing neoclassical economics’ theory of marginal productivity. Therefore,Post-Keynesian Economics’ theory of income distribution has similarities with theclassical economics and neoclassical economics’ income distribution theory, and thereare also differences between them.Post-Keynesian Economics has not established a monolithic income distributiontheory system until today and it is in a disadvantageous position when contendagainst with the mainstream economics. However, this bad situation cannot wipe out its theory’s rationality and its income distribution theory also brought enlightenmentto Chinese economic construction. In the process of Chinese economic transformation,the problems brought by excessive income gap and serious polarization become moreand more severe, and the phenomenon of “Poor in rich” are already appeared.Therefore, restudying Post-Keynesian Economics’ theory of income distribution tocomplete the income distribution regulation is needed.In conclusion, society is developed through the critical thought and debate,reviewed the classical theories can help us feel the bright light of predecessors’thought. Economics’ development process is the same as other sciences, they have toexperience the process of exploring and amending. Every predecessor’s theory can bethe enlightenment for us to solve the practical problems, and this is the meaning ofresearching economics theories.